For many of your clients – the adult children of aging parents – the reality of Long-Term Care (LTC) arrives not as a gradual realization but as a stark reality check as they suddenly become responsible for caregiving or managing care.  While there may be a physical and emotional strain or the logistical nightmare of finding appropriate care, nothing is more impactful than writing the first check to cover a parent’s care expenses…..other than the certainty that it will become a recurring monthly reminder of the uncertainty created by the need for care. 

However, This reality check is also a window to the future because those supporting or managing care for aging parents can ask an invaluable question:  How will you avoid passing this burden to your children and loved ones?

Reality Check: LTC Is Real and Expensive

First, the numbers don’t lie, and second, most Americans will need some form of LTC as they age, and finally, it’s expensive and excluded by Medicare and health insurance.  The cost of assisted living in 2024 averages $5,000 a month, and a nursing home can easily exceed $10,000 a month.   When a client’s parent needs care, they see these expenses firsthand, and the immediate sticker shock is tremendous:

• Making monthly payments for thousands of dollars.
• Seeing their parent’s savings deplete at an alarming rate.
• Concern about the tax implications of selling assets to cover costs.
• The emotional toll is equally profound as clients see a parent face the challenges and cost of aging.

From Reality Check to Client Engagement

When clients write the checks or know the cost to a parent, ask some basic questions:

• What would happen if you needed care tomorrow?
• Where would the money come from to cover your LTC needs?
• How can you avoid burdening loved ones like you’ve been burdened by mom/dad’s care?

These are critical questions because, without a plan, the financial and emotional consequences of LTC will shift to the next generation, just as your clients may be experiencing today.

There is a Cost of Doing Nothing

Failing to plan for LTC can have devastating consequences, such as unplanned asset liquidation when families are forced to sell off assets, often under duress and sometimes at a loss.  Then there are the tax Implications of using taxable investments or savings to cover care that can compound the financial strain, often leading to an erosion of retirement security as care expenses can derail even the most well-thought-out retirement plans.  Finally, family tension and resentment are created by the financial and caregiving burdens falling disproportionately on family members. 

An aging parent’s situation may be unavoidable, but your client’s future can take a different path…..

The Importance of Planning:  Avoiding the Monthly Check

Creating an LTC plan isn’t just about financial preparation—it’s about ensuring dignity, control, and a secure future for your clients and their families.  Here’s what planning can accomplish:

Protect Your Savings and Assets:   Leverage insurance-based solutions to shield your retirement savings and investments from unexpected care expenses.

Ensure Tax Efficiency:   Insurance-based options can provide tax-deductible, tax-deferred, tax-advantaged, and tax-free ways to cover future care costs.

Reduce Family Burden:   Proactively addressing future care needs ensures your client’s loved ones won’t face the same emotional and financial strain they’re experiencing now.

Maintain Control:   Planning allows clients to choose their preferred living arrangements, healthcare options, and care providers rather than leaving those decisions to chance.

Lessons Learned: Planning From A Client’s Experience with Mom or Dad

If your clients experienced the realities of a parent needing LTC, they are uniquely positioned to learn and act.  Consider this:

• What would they do differently if they could rewind time and plan for a parent’s care?
• How would they take those lessons and apply them to their future planning?

The reality check of a client watching a parent’s care unfold should serve as a catalyst for action.  The advisory community must move beyond the reactive mindset of covering today’s care bills and adopt a proactive approach for the future of every client.  LTC Planning ensures that checks written today become a legacy left for loved ones tomorrow, providing peace of mind, financial security, and assurance that clients get the care they want and need one day.  Now is the time to start these conversations and encourage your clients to take action now by offering a structured Plan Document or utilizing tools like the HALO Assessment to guide them through the complexities of Long-Term Care Planning.

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